Morgan Stanley Investment Management Closes Revolving and Rated Private Securitization Backed by Consumer Loans
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securitizationfinancial
Securitization is when a bank or company takes a bunch of loans or assets, like mortgages or car loans, and bundles them together into a single package. They then sell pieces of this package to investors, who receive regular payments from the borrowers. This process helps the original lender get money quickly and spreads the risk among many investors.
asset-based financefinancial
Asset-based finance is a type of lending where a company borrows money using tangible assets—such as accounts receivable (invoices), inventory, or equipment—as security, similar to using a valuable item as collateral at a pawn shop. Investors care because it affects a firm's access to cash and its risk profile: more asset-backed borrowing can provide quick funding but also ties borrowing limits to the value and liquidity of those assets.
tranchesfinancial
Tranches are portions or slices of a larger financing deal—such as a loan, bond issue, or equity round—that are released at different times or under different conditions. For investors they matter because each tranche can carry different risk, interest or payout terms and may be paid only if certain targets are met; think of funding as slices of a cake handed out as progress is made.
investment-grade notesfinancial
Investment-grade notes are debt securities issued by companies or governments that credit-rating agencies classify as low risk of default; they pay regular interest and return the principal at maturity. For investors, they act like lending money to a well-regarded borrower: generally steadier and safer than lower-rated debt but offering lower yields, so they matter for balancing income, safety and portfolio risk. Their quality affects borrowing costs and market confidence.
asset-liability managementfinancial
A risk-management process banks and other financial firms use to match the timing and size of what they own (assets) with what they owe (liabilities) so they can meet payments, avoid losses from rate changes, and keep operations funded. Think of it like a household balancing savings, mortgages and bills to make sure cash will be available when bills come due; investors watch it because weak management can signal liquidity trouble, volatile earnings, or higher funding costs.
Approximately $220 million total loan purchase capacity estimated
NEW YORK--(BUSINESS WIRE)--
Morgan Stanley Investment Management (MSIM), through its AIP Alternative Lending Group, today announced the closing of the group’s first asset-based finance securitization backed by consumer personal loans underwritten by multiple leading originators. Multi-originator Structured Asset Based Finance Trust 2026-1 (MSABF 2026-1) is a revolving, pre-funded private securitization that includes multiple tranches of investment-grade notes rated by KBRA, a nationally recognized statistical rating organization or an NRSRO. The transaction’s total loan purchase capacity is estimated at approximately $220 million, providing scalable exposure to consumer credit within a long-term financing structure.
Ken Michlitsch, Managing Director, AIP Alternative Lending Group, said: “This transaction reflects our continued progression in structuring durable and innovative capital solutions for investors. MSABF 2026-1’s revolving and rated structure provides diversifying exposure to consumer credit, an asset class to which many investor portfolios remain meaningfully underexposed. Our structure was designed with intentionality to address the needs of both insurance clients and asset managers, while offering our loan origination partners stable funding that supports their continued growth.
“For insurance capital, MSABF 2026-1’s structure addresses key considerations, including rated tranches, predictable cash flows, and a long-term reinvestment framework. We believe this structure enables insurers to efficiently access consumer credit exposure while maintaining alignment with their asset-liability management objectives.”
AIP Alternative Lending Group specializes in making allocations to loans underwritten by fintech-driven alternative lending platforms, targeting multiple borrower types. Morgan Stanley AIP GP LP, a subsidiary of MSIM, serves as Trust Administrator for this transaction.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,400 investment professionals around the world and $1.9 trillion in assets under management or supervision as of December 31, 2025. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit https://www.morganstanley.com/im
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For more information about Morgan Stanley, please visit https://www.morganstanley.com/
